How to Start Freelancing: A Beginner's Checklist

The checklist
Sample: a four-week launch plan

To start freelancing, work through eight items:

decide what you'll offer and to whom;
work out your rate;
check the registration and license rules where you work;
learn your tax obligations;
open a separate bank account;
prepare a proposal and a contract;
set up invoicing;
keep records from the first payment.

Each item below says what to do and links to the guide that covers it in depth. The rules quoted here are US rules from the Small Business Administration (SBA) and the IRS. Rules elsewhere differ, so check local rules and ask your accountant.

Billed publishes this page.

The checklist

1. Decide what you'll offer and to whom

Write one sentence that names the service and the clients it's for, such as blog posts for accounting firms. How to find freelance clients starts with this step and then covers where to find those clients.

2. Work out your rate

Your rate has to cover your living costs, your business costs, your taxes and the hours you can't bill. How to set freelance rates works from an annual target to hourly, day and project prices. The hourly rate calculator runs the same sum with your own figures.

3. Check registration and license rules (US)

The SBA's launch your business guide (opened October 30, 2026) says:

"You’re automatically considered to be a sole proprietorship if you do business activities but don’t register as any other kind of business."
"Your location and business structure determine how you’ll need to register your business."
"Local governments determine registration, licensing, and permitting requirements, so visit local government websites to find out what you need to do."

For the choice of structure, see how to choose a business structure, and ask your accountant or a lawyer where needed.

Employer Identification Number (EIN). The IRS EIN page (last reviewed or updated October 16, 2026) says "Generally, you need an EIN to:" and lists five cases:

"Hire employees"
"Operate a partnership or corporation"
"Pay sales and excise taxes"
"Change business structures or ownership"
"Administer certain trusts, retirement plans and estates"

It adds: "You never have to pay a fee for an EIN."

4. Learn your tax obligations (US)

The IRS self-employed individuals tax center (last reviewed or updated September 27, 2026) says: "Generally, you are self-employed if any of the following apply to you." The first case it lists is: "You carry on a trade or business as a sole proprietor or an independent contractor." The same page says: "As a self-employed individual, generally you are required to file an annual income tax return and pay estimated taxes quarterly."

These pages cover the details:

how to transition from employee to freelancer for self-employment tax and estimated payments when you leave a job;
what is self-employment tax;
what is quarterly estimated tax.

This isn't tax advice. Ask your accountant how the rules apply to you.

5. Open a separate bank account

The SBA guide says: "As soon as you start accepting or spending money as your business, you should open a business bank account." How to open a business bank account covers the steps, and how to manage freelance finances covers running the account month to month.

6. Prepare a proposal and a contract

Before work starts, put the scope, price, schedule and payment terms in writing.

How to write a freelance proposal covers the sections and the pricing.
Freelance contract essentials covers the clauses.
A freelance portfolio gives prospects examples of your work.

7. Set up invoicing

Before you finish the first project, decide what goes on your invoices, your payment terms and how clients can pay. How to invoice for freelance work covers rates, scope, deposits and timing.

8. Keep records from the first payment

The IRS recordkeeping page (US, last reviewed or updated May 1, 2026) says: "Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns." Keep each invoice, payment record and receipt from the first job onward.

Sample: a four-week launch plan

These are sample figures and dates for a fictional freelance copywriter.

Week 1 (June 1 to 5, 2026): chooses blog posts for accounting firms as the offer and sets a rate of $65.00 an hour.
Week 2 (June 8 to 12): checks the county and city websites for registration and license rules, and opens a business bank account.
Week 3 (June 15 to 19): writes a proposal and a contract template, and contacts 10 former colleagues.
Week 4 (June 22 to 26): writes two blog posts for the first client, tracking 7 hours and 5 hours.

The first invoice is sent on Friday, June 26, 2026:

Hours: 7 + 5 = 12
Amount: 12 × $65.00 = $780.00
Due date: on net 15 terms, June 26 + 15 days = Saturday, July 11, 2026

When the client pays, the copywriter records the $780.00 and keeps the invoice with the payment record (item 8).

Where Billed fits

Billed's invoice software page says: "Billed keeps invoicing, estimates, expenses, time tracking and reports in one account."
Its mobile app page says: "Create invoices and estimates, capture receipts with your camera, and track billable time from your phone."
Its expense tracking page says: "Record what your business spends, keep each receipt with its expense, and turn your spending into expense reports you can export for your accountant."

When this guide isn't for you

The setup steps differ if you're hiring employees, forming a partnership or corporation, or working across borders, so ask your accountant and a lawyer. If you're leaving a job to freelance, start with how to transition from employee to freelancer. To weigh freelancing against a salaried job, see freelance vs full-time.

Frequently Asked Questions

Do I need to register a business to start freelancing?

In the US, the SBA's launch your business guide (opened October 30, 2026) says: "You’re automatically considered to be a sole proprietorship if you do business activities but don’t register as any other kind of business." It also says: "Your location and business structure determine how you’ll need to register your business." Local governments set registration, licensing and permitting requirements, so check their websites, and ask your accountant or a lawyer where needed.

Do freelancers need an EIN?

The IRS says "Generally, you need an EIN to:" and lists hiring employees, operating a partnership or corporation, paying sales and excise taxes, changing business structures or ownership, and administering certain trusts, retirement plans and estates. It also says there's no fee for an EIN. Ask your accountant whether you need one.

Do freelancers have to pay estimated taxes?

The IRS self-employed tax center says: "As a self-employed individual, generally you are required to file an annual income tax return and pay estimated taxes quarterly." Ask your accountant whether this applies to you and how much to pay.

What should I set up before my first client?

A clear offer, a rate, a business bank account, a proposal and contract, a way to invoice and a place to keep records. In the US, also check registration and license rules with your local government and ask your accountant about taxes.

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How to Start Freelancing: A Getting-Started Checklist